The ________ Sensitive Is the Demand for Money to Interest

question 109

Multiple Choice

The ________ sensitive is the demand for money to interest rates,the more unpredictable velocity will be,and the link between the money supply and aggregate spending will be ________ clear.

• A)more; more
• B)more; less
• C)less; more
• D)less; less

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Definitions:

Money Supply Growth Rate

The rate at which the amount of money available in an economy is growing, influencing inflation and economic stability.

Phillips Curve

A concept suggesting an inverse relationship between the rate of inflation and the rate of unemployment within an economy.

Desired Expenditures

The amount of spending households, firms, and the government wish to make, usually influenced by economic conditions and policies.

Inflation

A persistent upsurge in the average cost of goods and services across an economy over time.